Quote:
Originally Posted by MaxL
I'm looking to buy a 530xi for my dad. I looked at buying off a lot, and there is no single 2019 available - why is that?
Also, with 2018 models, there is a 3500 incentive listed in the inventory search listing. Is this coming out of BMW AG or a dealer margin? Or, in other words, how much extra should a dealer be willing to discount on top of that?
I'm trying to decide if I should order a 2019 or buy 2018 off a lot - what difference in discount should I expect?
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Was just talking with my CA about the year-end incentives, how they come about, and who "pays" for them. You can just ask your CA where the various incentives are coming from. A good CA will tell you. And of course a good way to know is to just search the generic incentives on the BMW website and see if similar things show up.
He disclosed what I thought were two really interesting things:
1. Dealers love using BMW's money as much as we do as buyers, so they will always look for (legitimate) ways to capture manufacturer incentives. Moves more cars and doesn't touch their margin. Sometimes this does mean pushing buyers toward certain models or inventory cars, but they're happy to do it on orders, as well.
2. BMW manufacturer incentives seem to be less this year because he think they're projecting that they're already ahead of their competitors in total units sold. A big goal of the year-end stuff is to get unit numbers up (even at the expense of some profit), so that in the following year they can advertise things like "America's most popular X-sized luxury vehicle" or whatever.
This is probably all old news and obvious to many folks here, but it was interesting conversation while we were just sitting around waiting for the F&I guy to finish up with another deal. And, the sale/numbers had been agreed to and put in writing weeks prior, so it's not like he had any reason to make stuff up.